Stock Market Analysis - July 9

The Dow Jones Industrial average had a up week and a strong finish.  The Dow Jones average is within a Head and Shoulders pattern and/or descending channel.  Both of these patterns would suggest we still have downward prices in the near future.

The Heads and Shoulders stock pattern for the Dow Jones would suggest an 8,600 target for the Dow Jones average.

The descending channel would suggest a 9,500 short term target.

On the positive side, the Dow Jones did close above the 20 day moving average and the candlestick patter for Friday was positive.  It could break the descending channel pattern by closing above the upper resistance.  The Dow would have to close above the Right Shoulder value of 10,500 to break the Head and Shoulders pattern.

The Vix volatility indicator is hitting the 200 day moving average and previous low suggesting volatility could move up from here.